Company profile:

Chennai Petroleum Corporation Limited (CPCL), formerly known as Madras

Refineries Limited (MRL) was formed as a joint venture in 1965 between the
Government of India (GOI), AMOCO and National Iranian Oil Company (NIOC)
having a shareholding in the ratio 74%: 13%: 13% respectively.
In 1985 AMOCO disinvested in favor of GOI and the shareholding percentage of
GOI and NIOC stood revised at 84.62% and 15.38% respectively. Later GOI
disinvested 16.92% of the paid up capital in favor of UTI Mutual Funds Insurance
Companies and Banks in May 1992, thereby reducing its holding to 67.7%. The
Public Issue of CPCL shares at a premium of Rs.70 (Rs.90/- to FIIs) in 1994 was
oversubscribed to an extent of 38 times and added a large shareholder base.
As a part of the restructuring steps taken up by the Government of India, Indian Oil
acquired entire equity of GOI, in March 2001. In July 2003, NIOC transferred their
entire shareholding to Naftiran Intertrade Co Ltd, an affiliate, in line with the
Formation Agreement. Currently IOCL holds 51.89%, while NICO holds 15.40%
and the balance 32.71% is held by others.
CPCL has two refineries with a combined refining capacity of 11.5 MMTPA. The
Manali Refinery has a capacity of 10.5 MMTPA and is one of the complex
refineries in the country with
 Fuel,
 Lube,
 Wax and
 Petrochemical feedstocks production facilities.

CPCL’s second refinery is located in Nagapattinam at Cauvery Basin (CBR). This

unit was set up with a capacity of 0.5 MMTPA in 1993 which was later enhanced
to 1.0 MMTPA. The main products of the Company are LPG, Motor Spirit (MS),
Superior Kerosene oil (SKO), Aviation Turbine Fuel (ATF), High Speed Diesel
(HSD), Naphtha, Bitumen, Lube Base Stocks, Paraffin Wax, Fuel Oil (FO),
Hexane and Petrochemical feed Stocks. CPCL also supplies Linear Alkyl Benzene
Feedstock (LABFS) to a downstream unit for manufacture of Linear Alkyl
Benzene.

Pioneering efforts of CPCL:

CPCL had implemented the following projects that were unique and first of its
kind in the oil industry:
  Distributed Digital Control System (DDCS)
 Advanced Control and Optimization Techniques
 City Sewage Reclamation Plant
 Zero Discharge Plant
 RO Rejects Recovery Project
 Sea Water Desalination Project
 Renewable Energy Initiatives - Windmill Farm

Physical and financial performance:

The physical and financial performance of the Company during the last five years
is tabulated below:

Physical performance

Particulars 2014-15 2015-16 2016-17 2017-18 2018-19

Crude
throughput, 10782 9644 10256 10789 10695
TMT

Distillate
72.1 72.5 72.6 73.2 74.4
yield, %

Energy
index 92.5 95.1 92.5 88.6 83.7
(MBN)

Financial performance:

Rs. (Crore)

Particulars 2014-15 2015-16 2016-17 2017-18 2018-19

Gross 47878 34953 40586 44135 52177

Turnover

Profit before -742 787 1365 1458 (298)

tax

Profit after -39 771 1030 913 (213)

tax

Contribution 6723 9326 13706 13289 12417

to exchequer

Process information:
CPCL is the largest refinery in South India with a total refining capacity of 11.5
MMTPA. CPCL has two refinery located in Tamil Nadu — the first refinery at
Chennai with a capacity of 10.5 MMTPA and the second refinery at Cauvery Basin
near Nagapattinam with a capacity of 1.0 MMTPA.

The Manali Refinery located at Chennai is one of the most complex and integrated
refineries with
 three Crude Distillation units (CDU),
 Hydro-Cracker unit (HCU),
 Fluid Catalytic Cracking unit (FCCU),
 Continuous Catalytic Reforming unit (CRU),
 Visbreaker unit (VBU),
 Isomerization unit (ISOM),
 Diesel Hydro De-sulphurisation unit (DHDS),
 Diesel Hydro-treating unit (DHDT),
 Lube Hydro.-finishing unit,
 NMP Extraction unit,
 Propylene unit and
 Petrochemical Feedstock unit.

The first refinery complex of CPCL was commissioned in 1969 with a capacity of
2.5 MMTPA and later expanded to 2.8 MMTPA. This refinery was designed to
handle heavy crudes and to produce Lube oil based stocks (LOBS) in addition to
Fuel products like LPG, MS, HSD, SKO, ATF, Naphtha and FO.

The refining capacity was doubled to 5.6 MMTPA in 1984 by setting up an

additional Crude Distillation unit (CDU) with a capacity of 2.8 MMTPA. The
secondary processing unit — FCC was also installed to increase the production of
high value products. A Wax unit was set up to produce Paraffin and Match Wax.
The capacity of the second CDU was increased from 2.8 to 3.7 MMTPA through
de-bottlenecking, taking the total refinery capacity to 6.5 MMTPA. In 1994, the
Lube capacity was increased from 140 to 270 TMTPA.
CPCL set up a 0.5 MMTPA refinery at Cauvery Basin in 1993 for processing
sweet indigenous Narimanam crude. A gas treating unit to extract LPG from
Natural Gas was commissioned in 1996. The refining capacity has been increased
to 1.0 MMTPA in 2002 and is now capable of processing other crudes such as KG-
D6, PY-03 crudes. An oil jetty to transport crude from PY-03 and other sources
has been commissioned in 2003.

CPCL implemented a 3 MMTPA refinery expansion project in 2004 and increased

the refining capacity of Manali refinery to 9.5 MMTPA. Refinery III revamp taken
up during 2010, has further increased Manali Refining capacity to 10.5 MMTPA
The total refining capacity of CPCL (Manali + CBR) has thus increased to 11.5
MMTPA.

In order to maximize the distillates yield of the Manali Refinery and increase the
percentage of High Sulphur Crude processing, CPCL is implementing a Resid
Upgradation Project. This project involves installation of Delayed Coker Unit and
Revamp of existing Hydro Cracker Unit along with other associated facilities.

CPCL is accredited with ISO 9001: 2008 certification for OMS, ISO 14001:2004
certification for EMS and BS OHSAS 18001:2007 certification for occupational
health and safety.

Capacities of major units in Manali refinery:

Units Design (MMTPA)

CDU-I 2.8
Crude Distillation units (CDU) CDU-II 3.7
CDU-III 4.0

Fluid Catalytic Cracking unit (FCCU) 0.83

Once through Hydro-Cracker unit (OHCU) 1.85

Visbreaker unit (VBU) 1.15

Continuous Catalytic Reforming unit (CRU) 0.3

Isomerization unit (ISOM) 0.14

Diesel Hydro-treating unit (DHDT) 1.8

Diesel Hydro De-sulphurisation unit (DHDS) 1.8

Lube oil based stocks (LOBS) 0.27

Products:
CPCL produces a number of Petroleum and Specialty products that are used by
many industries like fertilizers, power, and petrochemicals besides catering to
roadways, railways and airways requirement of transportation fuel. The product
basket of CPCL includes:

A. Fuel Products
 Liquefied petroleum gas(LPG),

 Motor spirit(MS 150 ppm sulphur-non-metro)

 Motor spirit(MS 50 ppm sulphur-metro)

 Superior kerosene oil (SKO)

 High speed diesel ( HSD 350 ppm sulphur-non- metro)

 High speed diesel (HSD 150 ppm sulphur, metro)
 Aviation turbine fuel (ATF)

 Furnace oil

 LSHS

 Light diesel Oil (LDO)

B. Specialites
 Naptha (non-fertilizers)
  Bitumen VG3O
 Extracts-light

 Extracts-heavy

 LVI Spindle

 Lube base oil SN 150

 Lube base oil SN 400

 Lube base oil BS 150

 Lube base oil SN 850

 Lube base oil SN 500

CPCL directly supplies the following feed-stocks to neighboring companies at

Manali, Chennai

 Naptha

 Propylene
 Polybutyne feed-stock

 Butene
 LAB feed-stock

In addition, CPCL markets the following products to retail customers directly by

adopting a single window concept

 Food Grade Hexane

 Sulphur

 Paraffin wax - Type-II

 Paraffin wax- Type-IIA

 Paraffin wax - Type-III

Optimization:
CPCL has pioneered implementing Optimization techniques for both its Business
and Process requirements.

Process Optimization:
CPCL is the first among Indian refineries to implement Advance Process Control
(APC) and Optimization techniques in all its process units. APC is the proven
technique for reaping incremental economic benefits by implementing online
strategies to control higher-level objectives like quality control, energy
minimization, unit/refinery wide optimization and improved process unit stability.
CPCL has implemented APC technology in all its major process units and has
further improved on it to achieve the best in process automation through its
constant in-house endeavors, continuous technological upgrades and consistent
uptime maintenance. As a further step CPCL is aiming for implementing
Manufacturing Execution System (MES). MES is a cyclic approach which
integrates business Optimization systems like Planning, Scheduling, yield
accounting with real-time process systems like Process Information system,
Advanced Process Control and Performance monitoring.

CPCL has established a centralized, powerful, integrated reliable web based real
time Process Information Network (PIN) interfacing many different Distributed
Control Systems (DCS) models including remote monitoring of desalination plant
data. PIN also covers the off-site Tank farm information management system. PIN
architecture is based on Centralized Real-time historian database with in-house
developed user-friendly ASP based front end. PIN intranet website provides up-to-
date information on quantity and unit performance through a single window.
Various analytic tools like process trend view, tag browser have been configured in
PIN which aide in analyzing the process data easier.

Environment Conservation:
CPCL ever since its inception has been methodically planning and implementing
several environmental conservation measures. A dedicated Environment
Management Team functions exclusively to plan, implement, operate and monitor
all environment-related activities.

CPCL Manali Refinery has obtained ISO 9001, ISO 14001 and OHSAS-18001
certifications.
CPCL uses the following multi-pronged approach towards managing its
Environmental System

 Use of cleaner technology in Refinery process operations.

 Continuous operation of pollution control facilities.

 Creation of environmental awareness amongst all employees.

Cleaner Water:
 CPCL has established three Effluent Treatment Plants dedicated to each of
its three refineries. The total capacity of the ETPs is about 650 kL/hr and is
operated on a continuous basis.
 The treated water from Effluent Treatment Plants at CPCL meets MINAS
standards regularly.
 Part of the treated effluents is recycled for greenbelt development fire water
make up, chemical preparation and other peripheral applications in the
Refinery Complex.
 The remaining treated effluent is reclaimed for refinery process reuse
through a novel “Zero Discharge scheme using technologies of Ultra
filtration and Reverse Osmosis”. Two Zero Discharge Plants have been
installed and are in operation for reuse of treated effluent in the Refinery
Complex as boiler feed water and cooling water.

Conserving Water:
 CPCL invested Rs.24 crore in 1991 on reclamation of city sewage water by
employing conventional physico-chemical based tertiary treatment process
followed by membrane separation of contaminants through reverse osmosis.

 CPCL has revamped the conventional tertiary treatment plant with latest
technology of Ultra-filtration at a cost of about Rs.8.0 crore. This unique
project also indirectly helps in resource saving of metro water which is
diverted for the use by the city population and also avoids effects of disposal
of partially treated sewage into the environment.
 Additional Sewage Reclamation plant of capacity 2.50 MGD (Million US
gallon per day) has been installed and commissioned in 2007 June with the
latest Sequential Batch Reactor (SBR) technology, for bio-treatment of
sewage and Ultra-filtration for pre-treatment of Reverse Osmosis feed at a
cost of Rs.44 crore.
  Further seawater desalination plant of capacity 5.8 MGD at a cost of around
250 crore has been installed to meet the water requirement of the refinery
complex.

 With the above facilities, CPCL is self-sufficient in meeting its water

requirement without any dependency on Chennai Metro Water Supply &
Sewerage Board (CMWSSB).

Cleaner Air:

CPCL has been working on reducing air pollution on two fronts at its own plants as
well as in vehicles using petrol or diesel. At its Plants, CPCL has switched over to
Low Sulfur fuel - far less polluting than the high sulphur fuel used earlier. CPCL
has installed Hydrocracker Unit in the expansion refinery so as to not only improve
the quality of all the fuel products from the refinery, but also reduce sulphur
emissions from the existing refinery.
Also, Sulphur Recovery Units installed in CPCL results in substantial reduction of
sulphur dioxide emission at a cost of around Rs.4 crore. This unit partially recovers
hydrocarbons from the flare system. To further cut down air pollution, CPCL has
installed a Flare Gas Recovery Unit. CPCL has installed a Diesel Hydro De-
sulphurisation Unit in order to bring down the Sulphur content in HSD from the
level of 1% to 0.035% & 0.005% as per requirement. Low NOx burners are used in
boilers and process furnace heaters.
Underlying the importance of monitoring, in the CPCL refinery Complex, seven
numbers of state-of-art Continuous Ambient Air Quality Monitoring Stations’ are
installed. CPCL has a mobile Monitoring unit to assess the air surrounding its
plants. Continuous Stack Gas Monitoring units in all major refinery stacks have
been installed for monitoring Emission of Sulphur di-oxide, Nitrogen oxides,
particulate matter and carbon monoxide. Ambient air quality data are continuously
transmitted to Tamil Nadu Pollution Control Board.

For Control of emission of Volatile Organic Compounds, CPCL has installed

closed tanks in place of open ponds for Effluent Storage & also continuously
carrying out Leak detection and Repair (LDAR) program. CPCL has been
transporting all its products through pipelines to reduce air emission.
CPCL has been continuously reducing its own energy consumption and also
generating power by tapping solar & wind energy to reduce C02 emission.
Greener Environment:
The greening of CPCL and its environment is another facet of environmental
conservation. Planting and maintaining thousands of trees and shrubs form a green belt
around CPCLs plants. This mitigates fugitive emission, dilutes accidental releases and
balances eco-environment besides beautifying tile surroundings.

Solid Waste Management:

 Oily sludge from crude oil storage tanks & spent catalysts are the two major
hazardous Wastes generated in any Refinery.
 CPCL has introduced in-situ sludge treatment technology which involves
recovery of oil from sludge at Tank itself so that the sludge volume is reduced.
 Spent catalyst is disposed through authorized recyclers or disposed in dedicated
disposal facility created by Tamil Nadu Industrial Waste Management
Association (IWMA) with the approval of Tamil Nadu Pollution Control Board.

Safety:
Safety Health & Environment Management system has been formulated with the
following objectives

 No harm to any human being

 No harm to environment & ecological system

CPCL firmly believes that a Sound SHE management system will ensure
(i) Improved employee morale.
(ii) Nil lost time, and therefore SHE management has been a part of CPCLs daily
business.
This is being practiced in CPCL due to a strong commitment from top management
to personnel at all levels by combining SHE standards with performance standards
& imparting continuous training on SHE issues at all possible ways for all
personnel entering the premises of CPCL namely employees, contractors, security
personnel including drivers of material supplies etc. The level of implementation
of SHE management system is judged by
(i) Statistical reports,

(ii) Opinion surveys,

(iii) Risk analysis
(iv) Periodic inspections and

(v) Process improvement initiatives

(vi) Master Health Checkup for employees

(vii) Environmental Quality Analysis

For ensuring success in SHE Management the following best practices are adopted

 Development of SHE policy

 Conducting self- assessment & communicating the results to all concerned

 Recognition and rewards

 Conducting Awareness program for all concerned.

CPCL periodically carries out Internal Safety Audit, External Safety Audit,
Comprehensive Risk Analysis and HAZOP study periodically.
The fire protection systems and equipment are provided as per Oil Industry Safety
Directorate (OISD) Standards and other relevant guidelines. Adequate no. of Fire
Fighting Vehicles & Emergency Rescue Vehicle equipped with rescue apparatus/
gadgets, fire water storage, fire water pumps, firefighting chemicals meeting the
specified norms are available.

Automatic gas detection and alarm systems are installed in refinery units and tank
farm for quick detection of hydrocarbon leaks and emergency mitigation. CCTV is
installed at critical locations and linked to the Control Rooms for continuous
monitoring.

For Communication of emergency scenarios, Fire Call telephones, Manual Call

Points (MCP), Plant Communication System, UHF handsets and emergency sirens
have been provided.

CPCL has entered into Mutual Aid Agreement with two of the neighboring
industries. Well documented On-site Emergency Preparedness Plan, offsite
Emergency preparedness plan & Disaster Management Plan (ERDMP) are in
place.
Occupational Health Services:
Occupational Health Services (OHS) Centre located in the Refinery premises is
well equipped for immediate medical treatment during emergencies. CPCLs OHS
Centre is the first amongst Oil Industries to be set up and this is a Resource Centre
providing professional and technical assistance to other industries. The OHS
Centre is manned round the clock and is equipped with ambulances and beds.

Research and Development:

CPCL established an in-house R&D Centre in 1986 the first of its kind in India,

 Provide technological inputs to meet the corporate objective of technical

excellence in all aspects of refinery operations

 Promote indigenous technologies for refinery processes in association with

laboratories

 Develop new products and upgrade the quality of the existing petroleum
products. The R&D Centre has the recognition of the Department of
Scientific and Industrial Research since its inception. A Research Advisory
Committee consisting of scientists from IITM, Anna University and IOC
R&D has been formed for reviewing the research programs of R&D.

 CPCL has invested about Rs. 20 crore to establish pilot plants and analytical
facilities in the last two decades and has been recognized as a leading
research facility in the area of Petroleum refining in India.

Major Areas of Research:

 Crude Assay — over 100 crudes have been assayed in detail

 Evaluation of Catalyst and Feedstock for FCC, hydro processing and Hydro
racking process units

 Development of Catalysts for Refining Processes

 Solvent Extraction

 Product Formulation — Rubber Process Oils, modified Bitumen

 Oxidative and Adsorptive Desulphurization

 Biofuels
Major Research Facilities Available at Manali Refinery:
Pilot Plants:

 TBP Distillation Unit for carrying out detailed Assays on Imported and
Indigenous Crudes,

 Hydrotreating Pilot Plant,

 Catalytic Reformer Microreactor Unit,

 Liquid Liquid Extraction Pilot Plant,

 ACER MAT Unit for Fluid Catalytic Cracking Catalyst Evaluation,

 Hydrocracker Pilot Plant.